March 18, 1999 in Social Responsibility News

Offshore Production of Samsung Mobile Phones Begins

Seoul, South Korea - March 18, 1999 - Brazil is emerging as the world's third major market for wireless handsets, behind the US and China. To expand its presence in this market, Samsung Electronics Co., Ltd. dedicated a new plant at its existing production complex in Manaus, Brazil and officially began production of its mobile phones on March 15.
The production subsidiary, Samsung Electronics Da Amazonia Ltda. (SEDA), has set initial annual output at 400,000 units. These phones will be sold in Brazil as well as other Latin American countries that have either already selected the CDMA (code division multiple access) standard or will do so in the near future.

By producing all of its cellular phones in Korea, Samsung Electronics has experienced delivery delays and had difficulties responding to the preference of the local consumers and service providers. The company decided to build the new plant in Brazil in order to alleviate these technical problems and to get closer to its customers in the Latin American market.

The SCH-411 CDMA cellular phone produced at SEDA is the first model in the Brazilian market that includes the voice activated dialing feature. The product is both small and light and can accommodate many value-added functions such as short message service and voice mail. It is already immensely popular in Brazil, which has been supplied thus far by exports from Korea.

Since its introduction, the Samsung CDMA mobile phone has been well received by local consumers and service providers such as Telefonica. Currently, Samsung Electronics enjoys an approximately 40% share of the Brazilian mobile phone market, making it the industry leader.

In advance of the local production startup, Samsung launched an aggressive advertising campaign in Brazil that includes TV commercials, which will be aired in Rio de Janeiro, Sao Paulo and Curitiba. Samsung's "AnyCall" brand cellular phones have enjoyed legendary success in Korea, and now the company aims to re-create that success in the world market.

Samsung's production complex in Manaus already manufactures TVs, VCRs a monitors. By adding wireless phones to the lineup, Samsung has strengthened its stature as a comprehensive maker of electronics products.

Samsung Electronics Co., Ltd., with 1998 sales revenue of about 17 billion dollars (US), is a world leader in the electronics industry. The Korea-based firm has operations in more than 50 countries with 60,000 employees worldwide.
The company consists of three main business units: Multimedia & Home Appliances, Semiconductors and Information & Telecommunications. For more information, please visit our website, http://www.samsungelectronics.com


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